HOA’s are an important part of suburban living. They help maintain neighborhood appeal in the real estate market, improve common areas, maintain budgets by collecting fees and assessments, and add structure and organization to large, master-planned communities.

When an HOA is not working as intended, it leaves communities vulnerable to mismanaged budgets, higher monthly fees, neglected common areas, and failure in enforcing CC&R’s that keep lawns and houses from falling into states of disrepair. This mismanagement can drive down community values.

An HOA Management Checkup can be very effective for an association, especially if community members are dissatisfied with the state of the community.

As an HOA board member, you have a fiduciary responsibility to your community to make sure the association is managed honestly and effectively. Conduct a checkup of your current situation. You  can request a discussion with a reputable management company to see if your association is getting the best services for the community needs. When an HOA is not working as intended, it leaves communities vulnerable to mismanaged budgets, higher monthly fees, neglected common areas, and failure in enforcing CC&R’s that keep lawns and houses from falling into states of disrepair. This mismanagement can drive down community values.

If you are considering an HOA Community Management Checkup for your neighborhood, be sure these items are on the list:

• Common Area Maintenance Inspection.Common areas should be assessed on a regular basis for items that need maintained or repaired, safety inspections, and future planning. If an HOA management company is aware of a high-priced repair before it’s necessary, they can work the repair fee into an existing budget without raising assessments.
• Reserve Study. Has your community initiated a Reserve Study? This is an analysis of all the common elements of the community with a plan for future repair or replacement. It details how much the community should be transferring to reserves for these future projects.
• Project Reviews.Large projects should be analyzed and reviewed for quality of workmanship, overall value to the community, and budget and pricing review. If the results were less than optimal, a review can help the Board implement changes for the next big project.
• CC&R Enforcement.A quick drive around the neighborhood will tell you everything you need to know. If most lawns are maintained and houses are in good condition, the management company is enforcing CC&R’s. If there are a few houses that have fallen into states of disrepair, a good management company will have records of letters and violation notices on file. Granted, the terms of enforcement must be in line with the community’s governing documents.
• Financial Management. There should be a process in place for collecting unpaid assessments and monthly financial reports should be available. A reputable HOA management company will not only have an accounting team on staff, but they will also provide full-disclosure monthly reports to the Board, so that community finances are transparent. They will offer a variety of payment options to community members, including auto-draft and online payment options.

According to an article in the Charlotte Observer, the North Carolina Planned Community Act only requires associations to make annual income and expense statements and balance sheets available at the end of the fiscal year. If your community bylaws don’t require an audit or check-up, you can still request one as a member of your community.

Henderson Properties is pleased to offer HOA and condominium management services to the greater Charlotte, NC area. If you would like to learn more about our services or compare our community association management services to your current situation, email us, call 704-970-4145, or submit a request for an association management proposal. One of our team members will get back to you quickly.